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Anovax Insights

The term “China” can be misleading. “China” implies unity, consistency, and regularity when in fact the country is a collection of geographical, cultural and societal sub-groups that, when combined, form what most refer to as “China” and the Chinese market.

Anovax provides a unique and pointed view on the China market. We offer our clients actionable market intelligence based on years of findings and a strong, thorough understanding of Chinese consumer behavior patterns.

Fact Sheet

China, as a single entity, does not exist! With a land mass over 9.6 million sq. kilometers, a population of more than 1.3 billion, , China is as diverse as it is large.

Below are a few facts to help you wrap your head around the place and the people that constitute this behemoth of a marketplace known as China.

• The number of individual languages in China is a whopping 297!

• Although more than 90% of China’s population are Han, China is also home to some 55 ethnic minorities, of which the major groups include the Zhuang, Manchu, Hui, Miao, Uygur, Yi, Tujia, Mongolian, and Tibetan.

• 100 million people in China live on less than $1 per day.

• Over 30 million people in China live in caves.

• By 2022, 630 million Chinese — or 75% of the nation’s urban population — will be classified as middle class.

• Chinese consumers spent $3 trillion in 2012 — or 7.1% of the world’s total private consumption ($41.9 billion), according to data compiled by the United Nations.

• China possesses about 6% of the world’s total land area…on which it must sustain 20% of the world’s population.

• Smoking kills 1 million Chinese every year. The World Health Organization estimates that by 2050, smoking will kill 3 million Chinese each year.

• China surpassed Europe as the world’s biggest beer market. According to Credit Suisse’s World Map of Beer: “In the space of a couple of decades the country has gone from barely touching a drop to become the world’s biggest beer market, a considerable distance ahead of America. And beer drinking in China is growing fast, by nearly 10% a year.”

• China—the world’s sixth largest wine producer—will be the world’s top producer by 2058, according to Berry Bros & Rudd (BBR) “Future of Wine” report. The report also predicts that in 50 years, China will “rival the best of Bordeaux.”

• China used more cement between 2011 and 2013 than the United States used in the entire 20th century.

• The Chinese are “extremely brand conscious”. 45% of Chinese consumers surveyed believe that higher prices correspond to better quality (compared with just 16% in the U.S. and 8% in Japan).

• By 2020, China’s consumer consumption nation-wide will amount to 22 percent of the total global consumption, behind only the U.S. (35 percent).

• 73% of Chinese surveyed regarded shopping as a leisure activity. 45% identified it as one of their favorite pursuits, and just over half said it was among the best ways of spending time with the family.

• Between 2010 and 2020, the number of households in China with an annual disposable income above US$10,000 (in nominal terms) will almost quadruple– from 57.1 million households in 2010 to 222 million by 2020.

• 78% of software installed in China in 2010 was pirated.

• Macau, China, is the world’s top gambling destination, overtaking Las Vegas in total gaming revenues in 2007.

What about media penetration and usage in this vast country?

A recent presentation in 2015 by J Walter Thompson, the global ad agency revealed the fragmented state of media in China.

In 2015, there were 153 radio stations, 1915 newspapers, 9577 magazines and over 200K online vendor websites. This fragmented communications picture is offset to some extent by the growing shift to mobile and social media.

There were 668 million internet users in China by mid 2015 (only a low 49% adult penetration compared with the USA at 91%) and 594 million users were accessing the internet by mobile phone. In fact, mobile phone internet usage nearly tripled over the last three years in China! In response, mobile phone advertising expenditure doubled in one year in 2015 and is expected to grow by over eighty percent in 2016!